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Arthur, It will do nothing to stop the race to the bottom – that’s
built in to Classical thinking and is observationally true. The mistake made of course to attribute it to one or the other
political configurations. Both sides use as their template a kind of Keynesian
attitude – let the privileges continue, but we’ll tax them. Then, (figuratively) those taxes are used to alleviate some of the
harmful effects of the privileges. Perhaps the left offers a greater
alleviation, but it also acts more nanny-like than the right. The thought of getting rid of privilege hardly appears to dent the
consciousness of either side – probably says my skeptical side –
because they are paid too well. You forget the good done by bribing companies to locate in your area. The
local landholders (probably on the local councils) do very well when a company
relocates. Then, this money is spent by them and keeps the economy going. So,
there is your neo-Classical lesson for today – which you really didn’t
need. Harry ******************************* of 818 352-4141 ******************************* From:
[EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
On Behalf Of Cordell, Arthur: ECOM Maybe this will slow down the "race to the
bottom." Conservatives are doing something right. ------------------------------ Politics & Policy States
Pay Steep Price to Attract Industry --- Local Taxpayers, Small Businesses Bear
the Burden, Say a Growing Chorus of Critics
But the state's victory over rival "People are starting to see through the facade," says Robert
Orr, a retired state Supreme Court justice who runs the North Carolina
Institute for Constitutional Law, which filed the suit. "Incentives are
geared toward literally a handful of large, very wealthy and very powerful
corporations at the expense of the other businesses." Critics
have also taken aim at incentive programs in other states, including The
anti-incentive forces have been buoyed by a favorable decision in an States for years have been engaged in a kind of industrial arms race to
lure job-producing employers. But as incentive packages for corporations have
become costly, critics -- a philosophically diverse group of free marketers,
consumer advocates and former state officials -- have become more organized and
effective in pressing arguments that subsidies are wasteful and, perhaps,
illegal. In In Some
challenges are brought by companies unhappy that their competitors are getting
economic goodies. In late 2003 Northwest Airlines, of The debate over incentives also is taking place on a global scale. As an
outgrowth of the rivalry between Boeing Co. and Europe's Airbus, the Business
groups and state governments defend incentive packages as important tools for
spurring economic growth, and they are watching the DaimlerChrysler case in the
Supreme Court. If it upholds the lower court's ruling, they warn, that would be
devastating for development in An
anti-incentives decision by the high court would have broader implications as
well, potentially endangering incentives for projects such as factories and
sports stadiums across the country. An attack on incentives could encourage
states to shift to other financial inducements, such as direct cash grants. To
protect states' authority to set incentives, two Republican lawmakers from People
who oppose the Voinovich effort say that granting tax concessions to
corporations unfairly shifts the burden of funding services such as schools and
roads to individual taxpayers and small businesses. Greg Leroy, director of
Good Jobs First, a nonprofit economic-development research organization in In the case of Dell, the computer company threatened to move its planned
$100 million facility offshore if state officials didn't waive corporate income
taxes. When North Carolina balked, Kip Thompson, a Dell
vice president, told the state commerce secretary: "If a state like N.C.
can't get this, I'm worried for our country -- there's a certain amount of
patriotism here," according to copies of handwritten notes released by the
state. After Dell secured a state-incentive package, which included $225
million in income-tax credits over 15 years, it began seeking additional breaks
from municipalities. The city of Dell
spokesman David Frink said the company doesn't discuss its negotiations. " North
Carolina Republican State Sen. David Hoyle looks at it differently. "It's
out of control, like we're addicted and can't kick the habit," he said of state
incentives for corporations. "The perfect scenario would be if incentives
were outlawed nationally." Now, states have little choice but to continue
competing for new jobs, he said. Other
Mr.
Gerlach, an economist, estimates the state will get $4 in new economic-development
revenue for every $1 in tax breaks awarded to Dell. "This is a slam-dunk
deal for ---
Battling Tax Breaks Some recent court challenges to state tax incentives for businesses: STATE: DESCRIPTION: Suit filed last week challenging elements of a $280 million tax break for Dell. STATE: DESCRIPTION: Parts of a $280 million package for DaimlerChrysler ruled unconstitutional in September; case could reach STATE: DESCRIPTION: overturn state's job-creation incentive program. STATE: DESCRIPTION: Suit challenging economic incentives rendered moot when state passed a new program in May. STATE: DESCRIPTION: Northwest Airlines suit successfully challenged property tax breaks for rival airlines; state is appealing decision.
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